What financial obligation does a Bee Organized franchisee have to maintain?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) If Franchisee is an individual and not a Corporate Entity, upon the death or permanent disability of Franchisee, the executor, administrator, conservator or other personal representative of Franchisee, must appoint a manager that meets the equivalent of an Operating Manager within a reasonable time, which shall not exceed 30 days from the date of death or permanent disability. The appointed manager (as applicable) must serve and qualify as an Operating Manager and attend and successfully complete the Training Program within 60 days of the appointment. If Franchisee's Bee Organized Business is not being managed by a Franchisor approved Operating Manager (as applicable) within 30 days after such death or permanent disability, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of Franchisee's Bee Organized Business for, and on behalf of, Franchisee at Franchisee's sole costs until an approved Operating Manager is able to assume the management and operation of Franchisee's Bee Organized Business. Franchisor's appointment of a manager for Franchisee's Bee Organized Business does not relieve Franchisee of its obligations under this Agreement, including this Article 14.D., or constitute a waiver of Franchisor's right to terminate this Agreement pursuant to Article 16, below. At all times, including while Franchisee's Bee Organized Business may be managed by Franchisor's appointed manager, Franchisor shall not be liable for any debts, losses, costs, or expenses incurred in the operations of Franchisee's Bee Organized Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by Franchisee's Bee Organized Business. Franchisor has the right to charge a reasonable fee (the "Management Service Fees") for such management services and may cease to provide management services at any time.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to the 2025 Bee Organized Franchise Disclosure Document, a franchisee may face financial obligations to maintain the business in specific circumstances, particularly related to management continuity.
Specifically, if a franchisee who is an individual dies or becomes permanently disabled, their representative must appoint a manager meeting certain qualifications within 30 days. This manager must then complete the Bee Organized training program within 60 days. If a suitable manager is not appointed and approved within the initial 30-day period, Bee Organized has the option, but not the obligation, to appoint a manager to oversee the business.
In the event Bee Organized appoints a manager, the franchisee will be responsible for covering the costs associated with this management. Bee Organized has the right to charge a reasonable fee, referred to as "Management Service Fees," for these services and can discontinue them at any time. Importantly, the appointment of a manager by Bee Organized does not relieve the franchisee of their other obligations under the franchise agreement, nor does it waive Bee Organized's right to terminate the agreement. The franchisee remains responsible for all debts, losses, costs, and expenses incurred during the operation of the business, even while managed by Bee Organized's appointed manager.